Captive Insurance Times issue 138

ISSUE138 13 December 2017 

London tucks into a slice of the ILS pie 

A UK government cross-party committee 

has approved the UK’s Risk Transformation 

Regulations 2017 and the Risk 

Transformation (Tax) Regulations 2017, 

which make up the UK’s insurance linkedsecurities 

(ILS) legislation. 

In the Fifth Delegated Legislation 

Committee meeting, on 29 November, 

Jonathan Reynolds, Labour Co-operative 

MP and shadow economic secretary to 

the treasury, said: “We should always 

bear in mind the potential risks around 

securities markets, with the ILS being 

particularly affected during the global 

financial crisis.” 

Reynolds explained that this package of 

measures was announced in the 2015 

budget, “a long time ago” in political terms. 

He commented: “Now we face an entirely 

different landscape due to our exit from the 

EU. I do find it odd that the government is 

taking this approach to ensure the London 

market is equipped to compete globally, 

while ignoring the elephant in the room, 

which is that a no deal Brexit would cut off 

the industry at it’s knees.” 

However, Stephen Barclay, Conservative 

MP and economic secretary to the Treasury, 

replied to the shadow minister stating: 

“It is Brexit that reinforces the benefit of 

increasing the UK’s influence over what is 

already an established part of the market 

… one that is currently off shore. Bringing 

it within the UK will give UK regulators more 

influence over this market.” 

Read more on p8 

Captives Are For Risk Management 

Do You Have The Right Insurance-Experienced Team For Your Captive? 

To learn more about ACM, contact 

mmckahan@activecaptive.com. 

Visit us online www.activecaptive.com

News Round-Up 

Bermuda Monetary Authority report 

reveals diverse captive industry 

The majority of risk assumed by Bermudabased 

captive insurance companies 

originates in North America, but business 

lines covered in the jurisdiction remain 

diverse, according to the Bermuda Monetary 

Authority (BMA) Captive and Special- 

Purpose Insurers (SPI) Report 2017. 

Inside 

According to the report, 62 percent of risk 

originates in North America, while 25 percent 

comes from Europe. Of European risk, almost 

half was from Ireland, and 25 percent was from 

the UK. 

The report noted that Bermuda does not 

focus or specialise on any particular industry 

or type of business underwritten. This means 

it has a diverse range of industries that are 

utilising captives for risk management. 

The largest industry is financial institutions, 

which are parent companies for 18 percent 

or captives. 

News Round-Up 

SOBC Sandell has completed the 

acquisition of American Safety RRG after 

receiving regulatory approval 

page 4 

Healthcare Cybercrime 

Healthcare systems are playing major 

catch-up when it comes to cybercrime, 

says Bob Chaput of Clearwater Compliance 

page 10 

ILS Update 

The UK’s insurance linked-securities 

legislation has been approved by a UK 

Government cross-party committee 

page 8 

Industry Appointments 

Coming and goings at the National 

Association of Insurance Commissioners, 

Compre, MEC and more 

page 14 

This is followed by the shipping, transport 

and storage industry with 14 percent, and 

the automotive, manufacturing and retail 

industry with 11 percent. 

Captives that focus on financial institutions 

take a significant piece, 54 percent, of the 

premium share of the Bermuda captive market. 

Those focusing on shipping, transport and 

storage take 11 percent, and wholesale and 

retail captives take 6 percent. 

Of business written by Bermuda captives, 55 

percent falls under property coverage lines, while 

45 percent is casualty coverage. Of all property 

coverage, 38 percent is property and casualty 

catastrophe coverage; 21 percent is for warranty 

and residual value; and 16 percent was marine 

coverage, including protection and indemnity, 

cargo, hull and liability and war coverage. 

Casualty coverage is more evenly split, with 

workers’ compensation and employers’ 

liability accounting for 29 percent; motor 

coverage accounting for 24 percent; and 

general liability, including public, products, 

umbrella and product recall coverage, 

accounting for 21 percent. 

In terms of market composition, the report 

said 61 percent of captives have a ‘pure 

captive’ structure. The next most common 

structure was ‘other’, however, selected by 

21 percent. 

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2 Captive Insurance Times www.captiveinsurancetimes.com

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News Round-Up 

Rent-a-captives account for 7 percent, 

while group captives, association 

captives and agency captives account 

for 6, 4 and 1 percent, respectively, and 

risk retention groups make up less than 1 

percent of the market. 

Around 17 percent of insurers have 

segregated accounts, and 15 percent are 

in run-off. 

The report also noted the success of SPIs, 

following the introduction of the regime in 

2009, suggesting it has been “the catalyst” 

for creation of the insurance-linked securities 

market in the island. 

Bermuda SPIs wrote coverage in 17 regions 

in 2016, with 69 percent of business coming 

from North America and 25 percent coming 

from Europe. 

SPI reinsurance covers consisted primarily 

of catastrophe bonds and collateralised 

reinsurance, accounting for 44 percent and 

36 percent, respectively. 

Over 90 percent of premiums were written 

for property lines of business. Of all property 

lines, 77 percent was property and casualty 

catastrophe. Terrorism coverage accounted 

for 15 percent. 

Craig Swan, managing director for supervision 

(insurance) at BMA, said: “Considering the 

island’s leadership position in the global captive 

and SPI space, and its overall importance, 

there is naturally a level of interest generated 

from industry participants and peers.” 

SOBC Sandell acquires American 

Safety Risk Retention Group 

SOBC Sandell has completed the 

acquisition of American Safety Risk 

Retention Group (RRG) after receiving 

regulatory approval from the Vermont 

Department of Financial Regulation. 

American Safety marks SOBC Sandell’s 

sixth acquisition. 

Stephanie Mocatta, CEO of SOBC, said: “This 

acquisition builds on the recent transaction in 

Montana and we are very pleased to be able 

to provide finality to RRGs in these states. 

SOBC Sandell has the specialist skills and 

understanding that enables us to purchase 

these groups, allowing the previous owners to 

exit without any future liability. We are actively 

looking at other opportunities to work with 

RRGs and captives.” 

Rick Ecklord, senior managing director and 

partner at Sandell Re, added: “We are really 

pleased with the growth in the group and 

more particularly the team’s ability to provide 

solutions for complex, difficult or challenging 

insurance situations, through the provision 

of innovative solutions.” 

R&Q completes RQMA sale with Coverys 

Randall & Quilter (R&Q) has completed the 

sale of its Lloyd’s managing agency, R&Q 

Managing Agency (RQMA), to Coverys. 

As part of the acquisition, RQMA will be 

renamed as Coverys Managing Agency. 

On completion, a cash payment by Coverys 

of $22.6 million will be paid to R&Q, which, 

after costs and related incentive payments, 

will result in estimated net proceeds of 

£13.1 million. R&Q expects to generate 

a gain of $11.8 million over the group’s 

carrying value of RQMA. 

The net proceeds of the sale will be 

deployed to help finance R&Q’s legacy 

transaction pipeline, especially in the US 

and Lloyd’s, and to generate valuable 

commission income from the use of Malta’s 

direct licenses. 

RQMA’s core business is the management 

of Syndicate 1991, which writes niche small 

and medium-sized enterprise property and 

casualty business, mostly through delegated 

underwriting authorities. 

It also manages Syndicate 3330, which 

provides reinsurance to close and other 

reinsurance solutions for legacy business 

within Lloyd’s. 

Ken Randall, R&Q chairman and CEO, 

commented: “We are pleased to have 

concluded this transaction with Coverys 

which is a key element of our strategy to 

focus on legacy acquisitions and the writing 

of quality program business, which is 

mostly reinsured to highly rated reinsurers.” 

Gregg L Hanson, CEO and president of 

Coverys, said: “Through the acquisition, 

Coverys will inherit the continued 

responsibility to support the syndicates 

currently under management with RQMA. 

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malta 

flawless structure 

seamless opportunities 

Malta is host to a myriad of captive re/insurance companies, protected cell companies and cells that have come to 

enjoy the domicile’s stable regulatory environment and EU membership benefits. Malta offers re/insurers and cells: 

European Union Membership - Malta’s status as an EU member allows companies and cells the ability to 

passport their services throughout the European Union and EEA states. Maltese insurance 

law and regulation implements all relevant EU directives. 

Redomiciliation Legislation - Companies established in other countries can seamlessly transfer to Malta without any 

break in their corporate existence. 

Protected Cell Legislation - Protected Cell Companies can be incorporated in Malta, enabling cell promoters to write 

insurance through a cell. The law ensures proper protection and insulation of cell assets and liabilities from 

those of other protected cells and the core of the protected cell company. 

A Stable Regulatory Framework - The Malta Financial Services Authority (MFSA) is reputed to be “firm but 

flexible” - encouraging discussion with promoters at all stages of an application process and 

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Extensive Double Taxation Treaty Network - Malta has around 70 tax treaties with various EU and non EU countries. 

more information on: 

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@FinanceMalta FinanceMaltaYT FinanceMalta 

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FinanceMalta is the public-private initiative set up to promote Malta’s International Financial Centre

News Round-Up 

The acquisition additionally allows Coverys 

to assist new underwriting syndicates that 

seek to launch their business at Lloyd’s, 

while also maintaining business operations 

for existing syndicates.” 

ERI Re receives ‘good’ ratings 

A.M. Best has assigned a financial strength 

rating of “B+ (Good)”, and a long-term issuer 

credit rating of “bbb-” to Barbados reinsurer 

Energy Risk Indemnity Reinsurance (ERI Re). 

ERI Re is a Barbados-based start-up 

reinsurer, originally established in 2013 as 

a segregated cell company (SCC) focused 

in energy risks. 

Between 2013 and 2015, ERI Re conducted 

business as an SCC, however, in 2016 

management changed its license to a 

qualify as an insurance company to diversify 

its book of business and to underwrite a 

broader range of risks in the Latin American 

property and casualty market. 

The ratings of ERI Re reflect its strong 

capital base for the purpose of developing 

a diversified property and casualty book of 

business throughout Latin America. 

According to A.M. Best, the business plan 

of the company is “well structured”, but 

is dependent on reinsurance, a key factor 

considering the expositions the company 

wants to take geographically in Latin America. 

The ratings agency explained that the 

property and casualty lines it is targeting, 

such as bonds, property, oil and mining, 

require strong reinsurance protection. 

ERI Re is currently structuring its reinsurance 

programme and will remain a key factor for 

future rating assessments. 

A.M. Best said: “While the company is 

targeting reasonable premium volumes, 

due to the start-up nature of the company, 

execution risk limits the ratings; nevertheless, 

the company has a strong management and 

underwriting team to execute its business 

plan and to develop the company’s risk 

capabilities as its business grows.” 

It added: “Positive rating actions could take 

place if the company is able to achieve its 

goals in terms of premium volume and 

profitability while maintaining a strong riskadjusted 

capitalisation. Negative rating 

actions could take place if the company fails 

to meet its financial performance to a level 

that impacts its capital and therefore its riskadjusted 

capitalisation.” 

VADA to use CHSI Technologies 

Virginia Automobile Dealers Association 

(VADA) Group Self-Insurance Association 

(GSIA) is set to implement the CHSI 

Technologies cloud-based suite of 

configurable core systems software. 

VADA GSIA provides its members with 

effective workers’ compensation coverage. 

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News Round-Up 

manager of VADA GSIA, the implementation 

is part of a larger plan to take all six of VADA’s 

operations to the cloud. 

Allen said: “Like a lot of self-insured groups, 

we’ve had a policy administration server in 

place for more than 25 years, and CHSI’s 

offering of their configurable core systems 

modules via Microsoft’s Azure cloud 

platform will help us realise our larger plan.” 

“The [workers’ compensation] formula is the 

formula, so our goal is to become as efficient 

as possible in order to offer competitive 

pricing and cutting-edge claims and loss 

control services. To do that we need to get 

off the server and move to modern systems 

that run in the cloud.” 

Beijing and Guernsey partner up on 

captive insurance venture 

Beijing Airport Captive Management Consulting 

(BACM) and Guernsey-based insurance 

manager Alternative Risk Management 

(ARM) have partnered up on captive 

insurance project for Chinese businesses. 

As part of the joint venture, ARM will work 

alongside BACM to create a series of captive 

structures and the provision of captive 

management services for Chinese businesses. 

Currently, BACM is the only captive insurance 

consulting group in China and is backed 

by the Beijing Airport Economic Core Zone 

(BAECZ), a key hub for China’s business, 

industrial and creative sectors. 

In March, Guernsey Finance signed a 

memorandum of understanding with the 

BAECZ on behalf of Guernsey’s finance sector. 

According to Charles Scott, managing 

director of ARM, captives are going to be 

at the forefront of innovation in China’s 

insurance market. 

Scott said: “Chinese companies with 

international operations and those looking 

at expanding overseas are considering 

ways to use captive vehicles for their risk 

management needs rather than having to 

insure through the commercial market.” 

He added: “It is therefore an opportune 

time to have established a key partnership 

on the ground in Beijing. The fact that 

Guernsey Finance signed an memorandum 

of understanding with the BAECZ in March 

really facilitated our own agreement.” 

Last week, Guernsey Finance announced 

the establishment of Brilliant Reinsurance, 

the island’s first Chinese insurance company. 

Managed and established by ARM, the 

insurance company will focus on business 

being retroceded from the Lloyd’s of 

London market. 

Do you have a story we should cover? 

Let us know via: 

beckybutcher@blackknightmedialtd.com 

www.captiveinsurancetimes.com 

Captive Insurance Times 

7

ILS Update 

The ILS pie 

Over the past two years, the UK Treasury has worked with the 

Prudential Regulation Authority (PRA), the Financial Conduct 

Authority (FCA) and the London Market Group’s ILS taskforce to 

develop a “fit-for-purpose” ILS framework for the UK. 

Nicolas Aubert, chairman of the London Market Group, said: 

“Looking back at where we started in April 2015, our original 

wish list has pretty much been delivered in full and we appreciate 

the support that we have received from HM Treasury, the PRA 

and the FCA.” 

He said: “Each cell is fully funded for the risk or portfolio of risks 

for which it is designed, but is isolated from other cells within the 

PCC, ensuring there is no cross-contamination.” 

ILS has been gaining popularity over the last two decades and 

growth is set to continue. 

He added: “The strength of London’s reputation will serve as an 

advantage given recent disclosures around offshore tax havens, 

some of which have already become established ILS centres.” CIT 

Malcolm Newman, chairman of LMG’s ILS Taskforce, added: 

“Undoubtedly the regulations will evolve over time as the 

ILS market itself evolves, and we are encouraged by the 

PRA’s willingness to engage in pre-application dialogue 

with parties interested in using the new regulations. This 

dialogue should minimise any issues applicants may have 

with the regulations.” 

“The taskforce has consistently said that it seeks to grow the ILS 

pie … As an industry we need to be more vocal about the social 

good of insurance, demonstrating the resilience and critical 

support an insurance policy gives to its holder in the event of a 

disaster. Through doing this the pie will grow and there will be 

opportunities for London market players to generate growth via 

both traditional cover and new ILS solutions.” 

ILS timeline 

• At the March 2015 budget, the government revealed 

that it would work with the insurance industry and 

the UK’s regulators to develop a new “competitive” 

corporate structure and tax regime allowing ILS 

vehicles to be domiciled in the UK. 

• A year later on 1 March 2016, the first public 

consultation was launched on the government’s 

approach to the authorisation and supervision, 

corporate structure and taxation of ILS vehicles in 

the UK. 

The new regulations allow for insurance and reinsurance firms 

to transfer risk to the capital markets, meaning that risk can be 

managed more effectively for businesses and consumers. 

According to William Hogarth, legal director at Clyde & Co, this is 

a “great step forward” for the UK’s insurance market. 

Hogarth noted that London is in a “strong position” when it 

comes to attracting ILS business as it is home to some of the 

“world’s best and brightest insurance talent”. 

Following the government’s initial consultation on ILS, the second 

consultation, published in November last year, proposed to create 

a protected cell company (PCC) regime for multi-arrangement 

insurance special purpose vehicles (ISPVs). 

Hogarth suggested that the PCC model for ILS is attractive 

because it allows investors to “ring-fence risk; with each 

individual cell of a PCC effectively operating like a separate 

insurance vehicle”. 

• A second consultation was then launched later in 

November 2016. 

• The introduction of ILS legislation was delayed after 

UK Prime Minister Theresa May called for the snap 

general election that was held on 8 June. A final 

version of the UK’s ILS framework was expected 

to be published Spring 2017, but May’s decision to 

call a general election delayed the process. 

• The UK Treasury published new rules for ILS in July 

this year. 

• On 29 November, a Delegated Legislation 

Committee in Parliament approved the UK’s Risk 

Transformation Regulations 2017 and the Risk 

Transformation (Tax) Regulations 2017, which make 

up the UK’s ILS regulation. 


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Becky Butcher reports 


Playing catch-up 

Healthcare systems are playing major catch-up when it comes to 

cybercrime. Bob Chaput of Clearwater Compliance explains more 

Are hospitals and healthcare systems doing enough 

to protect against cyber attacks and cyber threats? 

The punch line is this: hospitals and healthcare systems are 

playing major catch-up. Incentive moneys to digitise healthcare 

has taken priority. Historically, we have been years behind other 

industries in the adoption of technology, and when it comes 

to safeguarding healthcare information, a decade behind. In 

addition, hospitals traditionally view cyber risk management as an 

issue for their information technology professionals to manage. 

What we are seeing is the perfect storm emerging. Patient health 

is extremely vulnerable. The changing threat environment and 

the internet of things (IoT) is blurring lines between information 

security and patient safety and is requiring each discipline to 

expand its scope. 

Healthcare leaders need to gain greater visibility into what’s 

happening enterprise-wide as it relates to IoT devices and 

proactively monitor threats across the organisation. It’s not only 

about the traditional IT assets such as the electronic health 



record system and the pharmacy and radiology systems, it’s also 

about biomedical devices that are attached to our patients or 

implanted in them. We see this as a large and growing business 

risk management issue, around which healthcare could be doing 

a whole lot more. 

Medical devices today can be used in the home, across 

networks in hospitals, and embedded in the patient. However, 

many IoT-enabled medical devices were manufactured without 

understanding the full implications of cybersecurity. IoT-enabled 

medical devices can expose people, hospitals, and manufacturers 

to many significant risks. These risks include possible harm to a 

patient’s safety and health, loss of Protected Health Information 

(PHI), disruption of information flow of connected devices, 

physical interference with equipment, impact on business 

operations, damage to critical infrastructure, and unauthorised 

access to devices. Within hospitals, these devices enter through 

numerous channels. Any threats to the confidentiality, integrity, 

or availability of information represent threats to patient safety. 

Identifying and mitigating potential risks in legacy and connected 

devices is an important challenge for the industry. Many 

organisations are starting to take action on the cybersecurity and 

privacy fronts. 

Hospital and healthcare systems in particular are playing major 

catch-up as it relates to cyber attacks, and there are opportunities 

for improvement. What we’ve had in the US as a result of the 

Electronic Health Records (EHR) incentive monies that have been 

awarded by the government through the 2009 American Recovery 

and Reinvestment Act (ARRA) is a great digitisation of our health 

care system. This significant investment in digitising healthcare 

has really taken priority over the matter of safeguarding it. 

Is technology moving too fast for health systems to 

keep up? 

There’s no doubt that the evolving pace of technology is moving 

too fast for the healthcare industry, but traditional approaches to 

patient safety and healthcare information risk management need 

to run alongside and evolve to address today’s technology and 

emerging direct threats to patients. 

The fast change of technology opens the door to a wide spectrum 

of threats, ranging from traditional intrusions designed to steal 

PHI to more novel attacks, such as tampering with biomedical 

devices or blocking access to essential records systems. 

Information security has become an essential component of 

patient safety. Concurrently, the information needed to provide 

care resides in more places than ever before, including electronic 

health records; the smartphones, tablets and laptops carried by 

physicians and other caregivers; intelligent medical devices such 

as smart pumps, monitors and implants; patient portals; and 

mobile health apps, not to mention provider partners, business 

associates and other members of the patient care ecosystem. 

Safe, quality care depends on timely access to this information. 

Therefore, any threats to the confidentiality, integrity or availability 

of information represent threats to patient safety. 

In large hospitals or health systems, departmental heads have a 

fair amount of autonomy over their selection and deployment of 

technology, and there are risk consequences. The IT person who 

is responsible for the networking and computing, applications 

and infrastructure is often unaware as new devices are attached 

to his or her networks. It’s a challenging problem for CIOs. 

Hospital and Health System CIOs and Chief Information Security 

Officers (CISOs) must collaborate with peers to integrate their 

cyber or information risk management (IRM) strategy into their 

organisation’s overall enterprise risk management/governance, 

risk managament and compliance strategy. Both must become 

part of day-to-day operations and address the requirement 

to respond to inevitable cyber incidents and restore normal 

operations. When hospital leaders adopt an integrated IRM/ 

ERM strategy, there can be greater returns for the organisation 

in terms of expanded knowledge, informed decision-making and 

reduced cyber risk. But, when they choose to ignore the strategic 

importance of IRM, the resulting complaints, breaches, failed 

audits or cyberattacks can erode the confidence of patients and 

staff, limiting the organisation’s ability to grow. 

With so many areas to protect, how do hospitals 

and healthcare systems go about understanding 

cyber exposures? 

First and foremost, hospitals need to do a better job of 

understanding their exposures. Hospitals and healthcare systems 

should be encouraged to look at the expanded ecosystem of the 

healthcare organisation and conduct a comprehensive information 

risk management (IRM) approach that is not a checklist. It’s a 

fundamental matter of identifying exposures and understanding 

them better. Understanding cyber exposures, it’s the starting point. 

How have hospitals and healthcare systems become 

big targets for cyber attacks? What threats are they 

actually facing? 

What better place is there for a bad guy to look than in health 

care—it’s single biggest hub for data. It’s a veritable library of our 

personal information and a treasure trove of that information. Not 

only do we have electronically protected health information, we 

have other personal identifiable information that includes driver’s 

licenses, dates of birth and, probably, payment card data. 

The types of cyber threats and attacks that organisations are 

facing include these four categories—adversarial, accidental, 

structural and environmental. In doing a risk analysis, these are 

the four categories that are evaluated. 

Of those four categories, the cyber attacker falls into adversarial. 

Organisations have threats in the adversarial category other than 


Captive Insurance Times 

11


foreign nations. It might be a malicious insider, and that individual 

may be the person who’s siphoning and infiltrating all kinds of 

data from the organisation. 

The accidental cyber threat can be in or outside the organisation. 

It can be as simple as a backhoe operator digging up a fiber 

optic cable that could disconnect your hospital from its electronic 

health record system. 

of that, you may be overspending or you may be woefully underprotecting 

your information assets. So you need to be wary of 

control checklists. 

Checklists will tell you to implement encryption, a firewall, data 

leak protection, a strong malware system and a good training 

programme, but if you have limited resources, how do you 

know in what order you should implement those? You will only 

understand that when you know your exposures. 

Structural threats are subject to the laws of physics; we’re dealing 

with electro-mechanical devices there. 

Environmental risks have to do with fires, earthquakes, mudslides 

and hurricanes. Health care can fall victim to these natural disasters. 

How can a captive help solve the problem? 

It’s about revenue and reputation and regulation … what we are 

seeing is that privacy/cyber risk is bleeding into professional 

liability issues. 

In your opinion, what is the safest way to safeguard 

patients’ healthcare? 

First step is to conduct comprehensive risk identification and 

assessment. The second step is to build a programme—not a 

once-and-done programme—but to adopt a cyber security 

framework, formal process and maturity model mentality; 

establishing, implementing, and maturing a programme. 

The only way you can do this is if you understand what your 

exposures are. The most effective way is at a very operational 

level, by adopting a comprehensive, accurate risk analysis. This 

way you will gain a better understanding of your exposures and 

be able to address importance compliance. 

Building a programme that adopts a cyber security framework, 

adopting a process and maturity model mentality, is showing 

continuous process improvement. This work needs to turn into 

establishing, implementing and maturing the programme. 

Hospitals must be very wary of a “control checklist”. Controls 

are a guide and source of actions you might take when, and only 

when, you understand what your exposures are. In the absence 

A captive structure can be the keystone to a healthcare 

organisation’s risk management strategy. Captives have long 

been a haven for funds used to finance risk. 

But, difficulties in measuring cyber exposures and concerns over 

the size of the exposure are still holding many captive owners back. 

Rather than securing funding to address the after-effects of a cyber 

attack, organisations should understand how a captive can be used 

to provide grants to the captive owner for reducing cyber risk and 

improving patient safety through training, periodic risk analyses and 

compliance assessments. 

Do you think there should be more regulation in terms 

of cyber security for healthcare to make sure these 

big organisations understand their cyber exposures? 

I’m not a fan of more regulation. The issue here is enforcing the 

regulations that already exist, implementing more accountability. 

If anything, I would tweak the regulations around accountability. 

The mantra of health care is “first, do no harm”. All we need to 

do is move this newly created matter of creating harm onto the 

agenda of those people who have, naturally and historically, been 

risk managers. CIT 

A captive structure can be the 

keystone to a healthcare organisation’s 

risk management strategy. Captives have 

long been a haven for funds used to 

finance risk 

Bob Chaput, CEO and founder, Clearwater Compliance 


Captives Are For 

Risk Management 

Do You Have The Right Insurance-Experienced Team For Your Captive? 

To learn more about ACM, contact 

mmckahan@activecaptive.com. 

Visit us online www.activecaptive.com


Comings and goings at the NAIC, Compre, MEC and more 

Members of the National Association of Insurance Commissioners 

(NAIC) have elected the association’s 2018 officers. 

Ito is new to the leadership of the NAIC, but previously served as 

chair of its Western zone. 

The appointments were made at the NAIC Fall 2017 National 

Meeting. All roles are effective 1 January 2018. 

Tennessee insurance commissioner, Julie Mix McPeak, was 

elected president, while Maine Insurance superintendent, Eric 

Cioppa, was named president-elect. 

Nick Steer, a founding director of Compre, will step down 

from his role as CEO, but will remain within the group 

serving as non-executive deputy chairman. 

As part of his new role, effective March 2018, Steer will advise on 

future acquisition. 

South Carolina insurance director Raymond Farmer will become 

vice president, and Hawaii insurance commissioner Gordon Ito 

was elected secretary-treasurer. 

In May, Farmer was appointed secretary-treasurer of the NAIC 

after the death of David Mattax in April. 

Will Bridger, managing director of acquisitions and Mark Lawson, 

group actuarial director, will jointly take on the role as co-CEOs. 

Philipp Kleyser will also be appointed to the company’s German 

office, serving as a director of its reinsurance subsidiary, Hamburger 

Internationale Rückversicherung-AG. 



Kleyser, who starts on 1 January 2018, joins from EY where, as 

executive director, he provided transaction and restructuring 

advisory support for the insurance industry in Germany and Europe. 

Steer said: “Next March I will have been with the business for 

32 years and CEO for the last nine. During that time, the group 

has completed 11 company and 27 portfolio acquisitions in 11 

different countries across Europe.” 

“It has grown to be a well-respected and trusted acquirer of nonlife 

insurance and reinsurance legacy business.” 

“I feel now is the right time to step back as CEO and let the 

team, under new leadership, build on the very stable platform and 

take the business forward. I look forward to contributing to the 

continued success of the business in my new role.” 

Midwest Employers Casualty (MEC) has appointed Greg Agnone 

as director of business development for group captives. 

In the newly-created role, he will be responsible for identifying 

new captive opportunities for MEC. 

Agnone has more than 30 years of experience in the insurance 

industry, and has worked in captives since 2004. 

MEC is a Berkley company focusing on excess workers’ comp. 

Capstone Associated Services has expanded its presence 

into the southwestern region of the US, with the addition 

of Clete Thompson. 

Thompson will return to Capstone as vice president of business 

development, after previously working at the company from 2007 

to 2014. 

Stewart Feldman, CEO at Capstone, said: “Clete Thomspon has 

deep knowledge of the captive insurance industry, and a keen 

ability to establish lasting business relationships—qualities that 

bolster Capstone’s existing multidisciplinary team.” 

Atlas Insurance Management has appointed Gail Olsen as 

senior vice president of finance and compliance. 

Olsen, based in the company’s Charlotte office, will be 

responsible for streamlining processes and reporting to improve 

efficiency, financial performance and profitability, creating an 

effective employee development programme, and developing 

the risk management and compliance programme. 

Martin Eveleigh, chairman of Atlas Insurance Management, 

commented: “Gail Olsen’s prior experience makes her a valuable 

asset to Atlas who will help us reach our internal financial and 

operational goals while helping our team provide solutions and 

great service to our clients.” CIT 

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JANUARY 31 - FEBRUARY 2, 2018 

FORT LAUDERDALE MARRIOTT HARBOR 

BEACH RESORT & SPA, FLORIDA 

Celebrating its 27 TH year, the 2018 World Captive Forum will address new and emerging 

risks facing companies and organizations worldwide, demonstrating how captives can offer 

solutions that may not be available in the traditional insurance marketplace. A domicileneutral 

conference, the World Captive Forum provides in-depth, high-caliber educational 

content to risk managers, benefit managers and financial executives whose organizations 

have risks insured by a captive or who are exploring the formation of one. Educational 

content will be presented on three separate tracks: General, Property/Casualty and Benefits. 

SESSION HIGHLIGHTS: 

• Captives 201: The Fundamentals and Recent Developments 

(Pre-conference Workshop) 

• Brexit, BEPS and Other International Regulations 

• Global Employee Benefit Programs: Are They Still Worth It? 

• Medical Stop-Loss: Structuring the Risks 

• Pooling in Microcaptives 

• Reinsurance in the Aftermath: Impact of 2017 Storms and Quakes 

• Growing Your Captive with Voluntary Benefits 

• Multiple Captives — Why and How? 

• Cell Company Overview and Innovative Applications 

• The World of RRGs (Risk Retention Groups) 

SPONSORS 

DIAMOND 

PLATINUM 

Delaware 

Bureau of Captive 

and Financial 

Insurance Products 

GOLD 

OPENING KEYNOTE 

SPACE WEATHER: ITS IMPACT 

ON OUR TECHNOLOGICAL WORLD 

Dr. C. Alex Young 

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SPONSORSHIP INFORMATION 

Jeremy Campbell | jcampbell@businessinsurance.com | 513-737-4063 

REGISTER, VIEW FULL AGENDA & MORE: 

businessinsurance.com/conference/wcf

Captive Insurance Times issue 138

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